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| NOTICES |
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| Notice No. |
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20220221-65 |
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Notice Date |
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21 Feb 2022 |
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| Category |
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Compliance |
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Segment |
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General |
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| Subject |
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Internal Audit for stock brokers/clearing members |
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| Content |
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This has reference to Exchange Notice no. 20080825-2 dated August 25, 2008 and Notice no.20081022-30 dated 22 October 2008, wherein all trading members / clearing members were directed to carry out complete internal audit on a half yearly basis by an independent qualified Chartered Accountants or Company Secretaries or Cost and Management Accountants, who are in practice and does not have any conflict of interest with the member. Further, SEBI vide circular no. SEBI/HO/MIRSD/MIRSD2/CIR/P/2016/95 dated September 26, 2016, has prescribed additional requirements in relation to internal auditors viz. appointment and rotation of Internal Auditors, monitoring of quality of Internal Audit Reports etc.
The Exchange while reviewing the internal audit reports submitted by members, has observed deviations in the findings of the internal audit reports and the Exchange inspection reports. It has been therefore decided to prescribe below mentioned additional eligibility criteria for the auditors qualified to conduct internal audit of members as per above mentioned circulars.
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Sr. No
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Eligibility Criteria
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Effective Date (Applicable for Internal Audit Report submissions from Half year ending)
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1
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The firm or at least one of the partners should have a minimum of 3 years’ experience in carrying out audits
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March 31, 2022
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2
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The Auditor/ Audit firm is not debarred or restrained from issuing any certificate by ICAI, ICSI, ICMAI, RBI, SEBI or by other regulator/law enforcement agency.
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3
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Auditors and/or its employees or partners signing the internal audit report shall have a valid NISM-Series-XIV: Internal Auditors for Stockbrokers Certification
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September 30, 2022
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Members are advised to comply with the above requirements.
For and on behalf of BSE Ltd.
Hiteshkumar Desai Kiran Sawant
Additional General Manager Asst. General Manager
Broker Supervision Broker Supervision
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